Base Metals Trading Flat to Lower

NEW YORK （TheStreet） -- Base metals were trading flat to lower Wednesday but could rise as the dollar index hits seven-month lows and equity markets move higher. Any gains could be capped, however, by mixed eurozone confidence data.

Copper

Copper for three-month delivery rose 0.4% to trade at $7,984 per metric tonne on the London Metal Exchange as a weakening dollar was bullish for commodities. Copper inventories narrowed 2,850 tonnes to 375,275 tonnes. The red metal finds support at $7,884 and resistance at $8,038.

Southern Copper（SCCO）, which closed at $35.17 on Tuesday, finds support at $34.74 and faces resistance at $35.39. Freeport-McMoRan Copper & Gold（FCX） closed at $87.03 with support and resistance at $85.45 and $87.98, respectively. Teck Resources（TCK） closed at $40.06 with support at $39.36 and resistance at $40.54.

Aluminum

Aluminum for three-month delivery traded relatively flat at $2,310 per tonne. Inventories touched 52-week lows for the second consecutive day as withdrawals stood at 3,000 tonnes to close at 4.36 million tonnes. The metal finds support at $2,276 and resistance at $2,336.

Sumitomo Metal Mining, Japan's third largest trading company, is planning to invest in an aluminum smelter in Malaysia. Press Metal Berhad will build the plant at an estimated $900 million. Sumitomo will buy a 20% stake in the smelter by investing $300 million initially and the balance during the second phase. In the first phase, the smelter will have an annual capacity of 120,000 metric tonnes.

Meanwhile, Aluminum Corporation of China（ACH） and Rio Tinto（RTP） are also partnering with other Malaysian companies to build aluminum smelters across the country.

Alcoa（AA） closed trading at $12.22 Tuesday, finding support and resistance at $11.94 and $12.38, respectively. Century Aluminum（CENX） closed at $12.88 with support at $12.48 and resistance at $13.09. Kaiser Aluminum（KALU） closed at $42.88 finding support at $41.66 and resistance at $43.55.